(Bloomberg) -- European natural gas prices halted their longest streak of gains since April as ample inventories offset supply risks and a heat wave loosened its deadly grip. 

Benchmark futures fell as much as 12% after rising as much as 5.2% earlier. Record-high temperatures that boosted demand in countries including Italy are starting to ease. In addition, wind generation is expected to increase from Germany to the UK in coming days, reducing the need for gas. 

Read: Greece Battles Raging Wildfires as Most of Europe Starts to Cool

While Europe emerged from last year’s energy crisis on a relatively stable footing — its gas storage facilities are significantly more full than usual — disruptions to supply and spikes in demand have caused recent volatility. Traders are likely to keep a close eye on weather forecasts for August to gauge future consumption.

Storage sites on the continent are at 84% of capacity, and 86% in Germany, with at least two months remaining in the summer gas-injection season. 

“Further upside momentum has been dampened by continuously high underground gas storage levels in Europe,” Masanori Odaka, a senior analyst at Rystad Energy, said in an emailed note.

Still, the region is increasingly competing with Asia for available liquefied natural gas, and several outages are due to curb supply in the coming weeks.

In the US, a portion of the Columbia Gas Transmission Pipeline shut after a fire in the vicinity, reducing feedgas supplies to the Cove Point LNG plant. Planned maintenance at major facilities in Norway is scheduled next month. In Russia, Yamal LNG intends to shut one production train for works during three weeks in August. 

Given the competing drivers and recent price spikes, investment funds cut their net short positions in benchmark gas futures by the end of last week, according to data from market operator Intercontinental Exchange Inc. released Wednesday.

Dutch front-month futures, Europe’s gas benchmark, fell 12% to €28.80 a megawatt-hour by 5:50 p.m. in Amsterdam. The UK equivalent also declined.

“Forecasts for the UK power mix indicate varying levels of solar generation over the coming weeks, but around normal levels for this time of year, while wind generation is expected to be around and above normal levels,” consultancy Zenergi said in a note. 

German power for next month fell with gas, dropping 6.1% to €84 per megawatt-hour.

--With assistance from Elena Mazneva and Todd Gillespie.

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